1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
ale4655 [162]
3 years ago
13

If a payback period for a project is greater than its expected useful life, the project's return will always exceed the company'

s cost of capital. entire initial investment will not be recovered. project would only be acceptable if the company's cost of capital was low. project will always be profitable.
Business
1 answer:
Rudiy273 years ago
3 0

Answer:

entire initial investment will not be recovered.

Explanation:

Payback period is one of the methods used in capital budgeting.

Payback period calculates how long it takes for the amount invested in a project to be recovered from its cummulative cash flows.

For example, if a project costs $360 and the cash flow each year for its 6 years useful life is $120. The amount invested would be gotten back from the cummulative cash flow in 3 years.

But if a project costs $360 and the cash flow each year for its 2 years useful life is $120. The amount invested would never be gotten back the cummulative cash flow. Therefore, the entire investment amount will never be entirely recovered.

The project will always not be profitable

I hope my answer helps you.

You might be interested in
Sue’s Jewelry sold 30 necklaces for $25 each to a credit customer. The invoice included a 6% sales tax and payment terms of 2/10
navik [9.2K]
The right answer for the question that is being asked and shown above is that: "<span>B. debit to Sales Returns and Allowances for $125.00. " </span>Five necklaceswere returned prior to payment. The entry to record the return would include a B. debit to Sales Returns and Allowances for $125.00. 
5 0
2 years ago
Luebke Inc. has provided the following data for the month of November. The balance in the Finished Goods inventory account at th
Vlad [161]

Answer:

Adjusted cost of goods sold = = $237,500

Explanation:

Given Opening inventory = $57,000

Cost Of Manufacturing for the month = $214,500

Closing value of inventory = $30,500

Net cost of Goods sold = Opening + Manufactured - Closing

= $57,000 + $214,500 - $30,500 = $241,000

Provided actual manufacturing overhead = $56,500

Applied to Work in process = $60,000

Difference between both of them = $60,000 - $56,500 = $3,500

Over applied cost of goods manufacturing overhead = $3,500

Charged to cost of goods sold

Thus cost of goods sold = $241,000

Adjusted cost of goods sold = Normal - Over applied = $241,000 - $3,500 = $237,500

Over applied manufacturing overhead has already been closed to cost of goods sold, that means that cost is included, now for adjusting such amount the value shall be deducted from cost of goods sold.

Final Answer

Adjusted cost of goods sold = Normal - Over applied = $241,000 - $3,500 = $237,500

6 0
3 years ago
Macroland, currency held by the public is 2,000 econs, bank reserves are 300 econs, and the required reserve/deposit ratio is 10
I am Lyosha [343]

Answer:

D)5,000; 7,000

Explanation:

Public is holding 2000 econs and banks reserves are 300 econs. It is mentioned that reserve requirement is 10%.

So total bank deposits must be 3000. Money supply in the economy is (3000 + 2000 = 5000)

When the reserve ratio is 0.1, that means the money multiplier is 10.

If there is an additional inflow of currency because of printing 200 econs by central bank then because of multiplier effect it will be 2000 econs.

Money supply from earlier 5000 econs will become 7000 econs.

Option D is correct.

7 0
3 years ago
Manufacturing costs from a scraped poor-quality product are $6000 per year. AN investment in an employee training program can re
romanna [79]

Answer:

We see that Prog A will give an annual CF of 75%*$6000 = $4500

Prog B will give annual CF of 95%*$6000 = $5700

Disc Rate Kd = 20%

So PV of Annuity of $1 for 5 yrs with Kd = 20% is 2.9906

So NPV of Prog A = CF0+CF1+ ....+Cf5 = -12000+2.9906*4500 = $1,458

So NPV of Prog B= CF0+CF1+ ....+Cf5 = -20000+2.9906*5700 = $(2,954)

So Prog A is more effective as it gives a Positive NPV

8 0
3 years ago
Number of Employees 20 Average Salary per employee $ 30,000 Weeks per year 52 Minutes available per week 2,400 Practical capacit
stich3 [128]

Answer:

1,996,800 minutes

Explanation:

Calculation for what is the practical capacity of resources supplied in minutes

Practical capacity of resources supplied =52 weeks × 2,400 minutes per week× 80% × 20 employees

Practical capacity of resources supplied= 1,996,800 minutes

Therefore the practical capacity of resources supplied in minutes is 1,996,800 minutes

7 0
3 years ago
Other questions:
  • What is an attorney’s secondary attempt to exclude a juror?
    6·2 answers
  • What do you call the second year of high school?
    10·1 answer
  • During the year, a $1,000,000 lawsuit was filed against a U.S. company for unsafe working conditions. Management and the attorne
    12·1 answer
  • Cyclical unemployment is the fluctuating unemployment over the business cycle that increases during​ _____ and decreases during​
    13·2 answers
  • By what percentage did​ mydeco's revenues grow each year from 2010 to​ 2013?b. by what percentage did net income grow each​ year
    13·1 answer
  • Steuben Company produces dog houses. During the current year, Steuben Company incurred the following costs:
    11·1 answer
  • Romboski, LLC, has identified the following two mutually exclusive projects:Year Cash Flow (A) Cash Flow (B)0 58,000 58,000 1 34
    13·1 answer
  • On January 1, 2020, ABC Corporation had 990,000 shares of common stock outstanding. On March 1, the corporation issued 150,000 n
    9·1 answer
  • A group of 10 golfing buddies have the following annual incomes: $32,000, $12,000, $56,000, $120,000, $10,000, $38,000, $70,000,
    14·1 answer
  • How long do you have to be employed to buy a house.
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!